Who can Benefit from the DPSA Housing Allowance?

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Who can Benefit from the DPSA Housing Allowance?

Who can Benefit from the DPSA Housing Allowance?

If you are a home owner or a tenant you can benefit from the Housing Allowance.

Home Owners

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There are three types of owners of housing in South Africa:

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  • Title holders: These owners have bought in towns and suburbs that fall under the control of metropolitan, local or district municipalities (local government). They have a title deed (which is registered in the Deeds Office) to prove their ownership. See Also: DPSA Circular     <<Apply Now
  • Deferred title: These owners have purchased their homes but they only get title after they have paid off the last instalment. They have bought through instalment sale, very much like buying furniture or a car on hire purchase. This is more affordable than being a title holder because one does not have to pay the duties and the fees to transfer title into one’s name.
  • Traditional ownership: These owners have permission from their traditional leader to live on and use the land. Although they do not have title to the land they can build a home there, live there and use the property as if they were owners. Traditional ownership can take place only on traditional/tribal land and not on land under the control of a metropolitan, local or district municipality

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You can therefore benefit from the Housing Allowance if you own a home through:

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  • a title deed;
  • having bought it on instalment sale; or,
  • permission from a traditional leader


You can also benefit from the Housing Allowance if you are a tenant, in other words renting a home from someone.

There are four types of tenants:

  • Occupational rent: This is where a tenant is renting the home from the person he/she has bought from. Occupational rent happens because the buyer has moved into the home before the title is transferred into his/her name, and it usually is for a short period only, a couple of months while the Deeds Office is processing the transfer documents.
    Take note!!! The Housing Allowance as a tenant will lapse at the end of the occupational rent period. The reason being that different documentation/information is required and a different value is attached to the housing allowance as a home owner that you will receive. In other words you have to submit two applications: one as a tenant and one as a home owner. Please ensure that you submit your applications timeously!
  • Renting from a municipality or private landlord: This is the most common rental situation and the tenant usually signs a lease agreement with the landlord/municipality, which sets out the rent to be paid and other conditions in terms of which he/she may use the home.
  • Rent from family/friends: Many people rent from their family and/or their friends, and because they all stay together there is no need for them to sign a lease agreement.
  • Renting from your Employer. This can take place either through:
    -State Housing – the employee is obliged to occupy and rent housing from the Employer in terms of PSCBC Res. 3 of 1999
    -Other Housing – the employee can choose to rent housing provided by the Employer in terms of PSCBC Res. 3. of 1999

You can therefore benefit from the Housing Allowance if you rent a home from:

  • the seller (occupational rent);
  • a private landlord or municipality;
  • family or friends, provided that you formalise your rental arrangements by means of a rental agreement. An example of such a rental agreement is attached to this guide, which you may use for this purpose. You may adapt it to suit your needs; and
  • the Employer (state)

See Also: DPSA Circular in January, February, March, April, May,  June, July, August, September, October, November

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